Should you or shouldn’t you pursue your real estate license? I know I’ve written before on why you shouldn’t get your license, but today, I’d like to explore the flip side of the coin.
Read below to explore a few reasons why you should consider getting licensed.
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The Top 3 Reasons Why You Should Get Your Real Estate License
1. You’ll learn the ins and outs of how real estate works.
The first reason you should get your real estate license—and probably most important one—is that it will help you jumpstart your real estate learning experience. You’ll go to around 12 to 14 weeks of classes, and you will learn anything and everything associated with becoming a successful real estate agent. You will also learn other things like branding, marketing, lead generation, contracts, talking to buyers, talking to sellers, compliance, etc. Unfortunately, there are a lot of real estate investors out there who do not understand these basics.
This process will also help teach you how to do real estate the right way. There are a lot of cowboys out there who do not know what they are doing. They break the rules and regulations on a daily basis. It’s making all of the other legitimate real estate investors look bad.
2. You’ll lower your risk.
The second reason is that it is less risky to get your real estate license and go through the whole process of learning how to do real estate the right way. In addition, when you do get your real estate license, you’re going to have to peg that license under a broker. Guess who is going to be overseeing your absolute every move, making sure that you are abiding by all of the laws and regulations, that you’re not doing anything shady? Your broker. So you will be at a lower risk because you will have someone overseeing all of your work. Plus, throughout the process of getting your license, you will meet multiple people. You will meet other real estate agents, so the networking will be absolutely amazing. I believe the more people you speak to on a consistent basis, the more your mind expands and the more educated your decisions become. Therefore, you will make fewer mistakes, thus lowering your risk.
Another thing is, you’re not going to need that much money to start. If you’re looking at buying, fixing and flipping or if you’re looking at buying, fixing, refinancing and holding, you’ll need $20,000 to $100,000 to get the process started. If you want to wholesale in a legitimate way, you should also have that much money set aside just in case you don’t perform on that contract. Then you can cover and close on that particular deal so you don’t lose your reputation. Look, in my opinion, risk is associated with money. The more capital that you have to invest in a particular transaction or a particular deal, the more you are risking. The less capital that you have to invest, the less your risk is. In this instance, when you get your real estate license, you’re not investing any capital; you’re investing your time for the most part. You earn if you sell, and you don’t earn if you don’t sell. So the risk is much lower than if you do not get your license and start the journey as a real estate investor.
Related: Answered: Should You Get Your Real Estate License?
3. You’ll reduce the hassle of starting out in real estate.
The final thing is that you’re going to reduce your overall hassle. What I mean by that is you now have your real estate license, you know how to do things the right way, you’ve got your network built, and you’ve met a lot of real estate agents who did that same course with you. Now you’re working for a broker. I would expect your broker to have a full-blown support staff at your disposal to assist you with anything and everything related to performing as a real estate agent. Compliance, transaction coordination, contract reviews, web design, marketing, lead generation, discussions with buyers and sellers, training and education—you will have all of these things at your fingertips.
Otherwise, real estate might seem like a jungle. You don’t know where to start, who to talk to, or where to go. What getting a real estate license does for you is put you on the right track. You are focused on one particular thing and doing that one particular thing successfully. When you don’t get your license, as I said, it’s a very tough world out there. You do not know what animal is going to come after you. You’ve got no protection from anything or anyone. You’re out there on your own.
Have any other reasons why folks should get their real estate license?
I want to hear from your below.